Fixed-Rate Loans Could Be the Next Step for Real-World Assets Onchain

TradingGain Newsroom·7d ago·21 Oct 2026, 15:00 UTC

Real-world assets already back the largest stablecoins, but borrowing against them onchain still mostly uses variable-rate pools. Peter Gaffney of O2O Capital Partners argues that fixed-rate, fixed-term lending is what the market is missing. He also suggests a small shift in Sky and Ethena reserves could create $1.8 billion of demand for real-world assets.

Why it matters

• Real-world assets already back the largest stablecoins, so they are part of core onchain liquidity.
• Current onchain borrowing against these assets relies on variable-rate pools, which may not suit every borrower.
• A 5% shift in Sky and Ethena reserves could create $1.8 billion of demand for real-world assets.

What to watch next

Watch whether lending platforms launch fixed-rate, fixed-term products for real-world assets, as that would test this demand thesis.